The Ad Hoc Committee of International Creditors formed when the agro-industrial company Vicentin defaulted, today asked the Government to initiate a “constructive dialogue” to advance the regularization of the company’s debt. In a statement, the group of institutions expressed its “strong readiness to engage in constructive dialogue with government authorities” with the aim of “alleviating the overall financial situation of the company”.
Vicentin’s debt, which runs through a creditor call, is around $1.35 billion, largely the result of a non-payment loan from Banco de la Nación Argentina.Since December, the company has announced that it could not cope with the payments and defaulted. On Monday, the national government decided to speak and will send a law to the Congress of the Nation for expropriation.
We arranged the intervention of the Vicentin Group and sent congress an expropriation law to ensure the operation of the company and the jobs. It is a response to market concern, but also a strategic decision for the economy. pic.twitter.com/0Ubz0GR5Yd— Alberto Fernández (@alferdez)
June 8, 2020
The committee consists of six international financial institutions: IFC (International Finance Corporation, part of the World Bank Group), FMO (Dutch State Controlled Development Bank), ING, Rabobank, Natixis and Credit Agricole.
“The objective of the Committee, which was formed immediately after the announcement of Vicentin’s financial collapse in December 2019, is to jointly negotiate the recovery of the more than US$500 million in loans to Vicentin to promote the development of the Argentine agri-export sector,” he said.
In this note: